CIAO DATE: 09/2009
August 2009
Columbia Center on Sustainable Investment
After growing faster than other emerging markets for some time, Indian investment abroad declined in 2008 and will decline further in 2009, in an uneven pattern among destinations. Thus, the value of cross-border M&As in the UK fell by 99% in the first half of 2009, over the first half of 2008, while it grew by 6% in the US. The global slowdown has made a difference, as have the credit crunch and a depreciating Indian currency. The stronger than expected domestic GDP growth in the first quarter of 2009 is a positive sign in this context, as is the fact that not every Indian firm with foreign interests is cash-poor.
Resource link: Indian FDI falls in global economic crisis: Indian multinationals tread cautiously [PDF] - 326K